What is the real wage rate?
What will be an ideal response?
The real wage rate is the money wage rate "corrected" for changes in the price level. It is calculated by dividing the money wage rate by the price level. The real wage rate is the quantity of goods and services that can be purchased by an hour's worth of work.
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A risk-neutral monopoly must set output before it knows the market price. There is a 50 percent chance the firm's demand curve will be P = 20 ? Q and a 50 percent chance it will be P = 40 ? Q. The marginal cost of the firm is MC = Q. What is the expression for the expected marginal revenue function?
A. E(MR) = 50 ? 2Q B. E(MR) = 40 ? 2Q C. E(MR) = 20 ? 2Q D. E(MR) = 30 ? 2Q
When a monopolist is ________, it has equated marginal revenue and marginal cost.
A. producing efficiently B. maximizing its total revenue C. breaking even D. maximizing profits